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2025-06-19

News Categories : Committee News 

In 2011, the North Central Provincial Council renovated 53 roads at an overestimate of Rs. 1.17 billion – COPA disclose

  • The same road has been divided into numerous projects worth less than Rs. 5 million - contracts have been awarded for 53 roads dividing it into 741 projects
  • It was also revealed that 629 projects (42 roads) worth Rs. 2934 million have been illegally awarded to one contractor without calling for tenders
  • Up to 45 million rupees were paid for 1 km of a road that cost about 11 million rupees
  • This fraud of innocent farmers' tax money in North Central Province is a tragedy - a massive fraud in the history of road development - COPA Chair states
  • 100 million rupees of advance payments to build a 540-million-rupee auditorium for a school with less than 500 children have been wasted

 

At the Committee on Public Accounts (COPA) meeting held yesterday (Jun. 18), it was revealed that the North Central Provincial Council had carried out the rehabilitation of 53 roads damaged by floods in 2011 based on an additional estimate of Rs. 1,170 million. This fact was later discovered during an investigation conducted in 2013 by a team of engineers from the University of Peradeniya, which also revealed that the construction of these roads lacked proper standards, leading to the suspension of payments to the contractors, according to officials.

These revelations were made during the COPA meeting chaired by Hon. MP Aravinda Senarath, convened in Parliament yesterday (18) to discuss the 2023 Auditor General’s report and the current performance of the North Central Provincial Council. The Secretary to the Ministry of Public Administration, Provincial Councils and Local Government, the Chief Secretary of the North Central Province, and several officials from the North Central Provincial Council participated in the meeting.

It was disclosed that the estimate for these 53 roads was Rs. 3,592 million and that multiple small-scale projects, each valued at less than Rs. 5 million, were created for a single road, resulting in 741 contracts awarded through limited bidding processes. It was further revealed that dividing the same road into multiple small projects costing under Rs. 5 million allowed the projects to be implemented with the approval of the then Director General of the Provincial Road Development Authority.

Moreover, it was noted that these projects had been distributed among only seven contractors without a public tender process. One of these contractors had received 629 projects (covering 42 roads) worth Rs. 2,934 million. Officials stated that based on the contractor's financial capacity and experience, contracts worth only Rs. 300-600 million should have been awarded. It was also discussed that this contracting company was linked to a politician who held power in the North Central Province at the time.

Accordingly, it was revealed that payments of up to Rs. 45 million had been made for 1 km of road that would typically cost around Rs. 11 million, indicating severe corruption. Despite such large expenditures, the roads had deteriorated quickly due to substandard construction.
The main official involved in this incident, who served as the Acting General Manager of the Provincial Road Development Authority at the time, is now deceased. It was further revealed that he had previously served at the Mahaweli Authority and had been dismissed due to allegations of treasure hunting. Additionally, officials who opposed these corrupt activities faced various hardships, and the General Manager of the Provincial Road Development Authority appointed thereafter was sent on retirement in 2015 by the then Chief Minister of the province due to rejecting payments to these contractors.

Officials of the Finance Commission also pointed out that allocating such a large amount of funds to a Provincial Council for road development itself was problematic. It was discussed that this situation arose due to the influence of the Minister of Economic Development at that time.

The COPA Chair stated that it was deeply regrettable that the tax money of hardworking farmers in the North Central Province had been defrauded in this manner, and described this incident as one of the most corrupt events in the country’s road development history. Accordingly, the committee recommended identifying the officials involved and taking necessary steps to recover the misappropriated funds. It was also recommended to lodge complaints with the Commission to Investigate Allegations of Bribery or Corruption and the Criminal Investigation Department, and to submit a report regarding the political authority involved in this incident.

Attention was also drawn to an agreement made in 2017 with a construction company to build an auditorium for Palugasdamana Maha Vidyalaya for Rs. 542,019,300 (Rs. 542 million). It was revealed that although an advance of Rs. 100 million had been paid to the contractor, the construction had been abandoned at the initial stage. It was discussed that allocating such a large amount of funds without any feasibility study to a school with less than 500 students was unjustifiable, and that the decision had been made solely based on the then Chief Minister of the North Central Province. Furthermore, it was discussed that the contractor had close ties with the political authority.

The committee recommended that an investigation be carried out into the officials involved in this now-defunct project and that necessary actions be taken to recover the funds if any misconduct is found. The officials were instructed to submit a report regarding this matter within three weeks.

Hon. Members of Parliament Dr. M.L.A.M. Hizbullah, Chamara Sampath Dassanayake, Sagarika Athauda, Attorney at Law, Oshani Umanga, Thushari Jayasinghe, Attorney-at-Law, T.K. Jayasundara, Susantha Kumara Nawarathna, Sunil Rathnasiri, and Dinindu Saman Hennayake participated in the COPA meeting held.



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